Leases

12 Months Ended

Dec. 31, 2021

Leases

The Corporation leases various office spaces and specialized lending production offices under non-cancellable operating leases which expire on various dates through 2028. The Corporation also leases office equipment. The Corporation recognizes a right-of-use asset and an operating lease liability for all leases, with the exception of short-term leases. Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. During 2021, the Corporation extended the term of two of its office spaces by one and three years, resulting in a $316,000 increase in the right-of-use assets in exchange for a lease liability. Also during 2021, the Corporation entered into a new lease in Indiana resulting in a $117,000 increase to the right of use asset.

In 2019, the Corporation entered into a sublease for office space it vacated in its Kansas City metropolitan area which expires in 2023.

The components of total lease expense were as follows:


	For the Year Ended December 31,
	2021		2020
	(In Thousands)
Operating lease cost	$	1,513	$	1,494
Short-term lease cost	158		222
Variable lease cost	492		522
Less: sublease income	(170)		(113)
Total lease cost, net	$	1,993	$	2,125

Quantitative information regarding the Corporation’s operating leases was as follows:


	December 31, 2021		December 31, 2020
Weighted-average remaining lease term (in years)	5.05		5.80
Weighted-average discount rate	2.51	%	3.03	%

The following maturity analysis shows the undiscounted cash flows due on the Corporation’s operating lease liabilities:


(In Thousands)
2022	$	1,628
2023	1,103
2024	816
2025	666
2026	646
Thereafter	996
Total undiscounted cash flows	5,855
Discount on cash flows	(449)
Total lease liability	$	5,406